Daily Review for June 15, 2021
Biden’s agenda continues in Europe. The market is looking forward to tomorrow’s meeting with Putin.
The FED begins its two-day meeting, where they will release its economic analysis and outlook. Interest rate decision will be announced tomorrow. The market does not expect any changes.
Wall Street starts the day with gains in the futures market.
Traders start buying gold to hedge portfolios against possible volatility generated by geopolitical or short-term economic changes.
In Europe, inflation data are convincing the market for the time being. The DAX 30 and the EuroStoxx50 are in positive territory.
EURUSD is looking for the 1.2170 area. Traders are waiting for the currency’s reaction to the FED meeting.
| S&P500 +0.24% |
| The market is aware to the FED meeting where the decision on interest rates will be made. At the moment, Wall Street futures are in positive territory, with the S&P500 rising +0.24%, the Dow Jones +0.21% and the Nasdaq 100 +0.25%. Analysts believe that the FED will continue the economic stimulus plan for a longer period of time. Therefore, the short-term trend of the equity market is bullish. |
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| Support 1: 4,253.30 Support 2: 4,249.97 Support 3: 4,247.56 Resistance 1: 4,259.04 Resistance 2: 4,261.45 Resistance 3: 4,264.78 Pivot Point: 4,255.71 |
| The price is between resistance 1 and 2. The continuation of the trend depends on the FED meeting. Bulls are looking for 4,270. Trading range between 4,247 and 4,264. Pivot point at 4,255. RSI in overbought zone. |
| GOLD +0.14% |
| Traders continue to pay close attention to this week political agenda. Tomorrow Biden will meet with Putin. Also tomorrow is the US interest rate decision. In the meantime, investors are buying gold to mitigate the geopolitical and monetary policy volatility that could be generated. As a result, the price of gold is currently up 0.14% and is trading at USD$1,868.85. |
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| Support 1: 1,866.89 Support 2: 1,865.22 Support 3: 1,863.24 Resistance 1: 1,870.54 Resistance 2: 1,872.52 Resistance 3: 1,874.19 Pivot Point: 1,868.87 |
| The price is below the Ichimoku cloud, but recovering the uptrend towards resistance 1. The price is also below the 200-day moving average. Trading range between 1,863 and 1,874. Pivot point at 1,868.87. RSI neutral. |
| DAX 30 +0.36% |
| In Europe, traders are aware of inflation data from Germany, France and Italy. Today the European Union’s trade balance will also be presented. At the moment, the macroeconomic data has favored the DAX 30, which is currently up 0.36% and is trading at 15,768. On the other hand, analysts are following Biden’s agenda in Europe and the development of governments strategic plans. |
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| Support 1: 15,741.9 Support 2: 15,723.2 Support 3: 15,710.9 Resistance 1: 15,772.9 Resistance 2: 15,785.2 Resistance 3: 15,803.9 Pivot Point: 15,754.2 |
| Price is at resistance 1, looking to break out of the double top in 15,767. Price is above the Ichimoku cloud. Trading range between 15,710 and 15,803. Pivot point at 15,745. RSI in overbought zone. |
| EURUSD +0.19% |
| Analysts continue to evaluate the tone of the Fed’s Tapering. The market expects a faster than expected tapering of government bailouts, mainly due to the level of inflation. The inflation target in developed markets is 2% per year. Therefore, the money supply should start to tighten. At the moment the currency is up 0.19% and is trading at 1.2139. |
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| Support 1: 1,2124 Support 2: 1,2117 Support 3: 1,2111 Resistance 1: 1,2138 Resistance 2: 1,2145 Resistance 3: 1,2152 Pivot Point: 1,2131 |
| The price is going out of the Ichimoku cloud and moving towards resistance 2. If the Bulls clear the way, the price of the currency could reach 1.2170. Trading range between 1.2138 and 1.2152. Pivot point at 1.2131. RSI in overbought zone. |
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